In the News

Financial services slowly, cautiously embrace social media

“In 2008, most were just starting to get a handle that this was out there,” said Alan Maginn, senior analyst at Corporate Insight, which provides research and analysis to the financial services industry, at last month’s Social Media in Wealth Management Leadership Forum sponsored by the Business Development Institute in New York. “The ones that were smart were at least claiming their names.”

In 2008, 45% of brokerages had a Facebook presence; today, 80% are on Facebook, Maginn said. Bank and credit card-issuer involvement on Facebook has gone from 56% to 82% in that time frame, and annuity companies’ participation has jumped from 17% to 79%.

“LinkedIn has become a prime prospecting area for financial advisers,” Maginn said. “Also, it doesn’t require the constant, thoughtful updates that Facebook or Twitter require.”